Jerry Samet
05-28-2012, 10:51 AM
The market was down most of the day Friday and the major averages sold off into the close to finish near their lows of the day. They challenged their declining 10dma's during the day but were unable to close above them. These moving averages continue to rule the patterns and the first sign of strength will be breaking above this resistance with conviction. Volume was down across the board, as would be expected on the Friday before a holiday weekend. Leading stocks performed about in line with the overall market as the leaders index fell .22%, also on very light volume. The market remains in a correction, but as I have said before there seems to be a bid under the market. Every time it looks like there will be a bad break buying comes in, particularly near the close. The source of this buying is not known, but probably is related to the government. It is rare for a sustainable rally to begin this time of year, so there is likely to be a lot of beach time this summer. Jerry